VAT · June 17, 2026 · 2 min read
When it pays to become a VAT payer: voluntary registration
VAT registration is mandatory once you exceed the statutory turnover threshold. However, an entrepreneur can also become a VAT payer voluntarily. When does this make sense, and when will it be a burden for you instead?
How VAT works in a nutshell
A VAT payer adds tax to their prices (output VAT) and at the same time deducts VAT on their purchases (input VAT). They pay the difference to the state. A non-VAT payer does not charge VAT, but cannot deduct it on purchases either.
When voluntary registration pays off
- Your customers are mostly VAT payers – they deduct your VAT, so it does not add to their costs.
- You have high input costs with VAT (goods, materials, equipment) – the VAT deduction will genuinely reduce your costs.
- You are planning a larger investment on which you want to claim a VAT deduction.
- You trade within the EU and registration will simplify cross-border supplies.
When voluntary registration does not make sense
If you sell mainly to end customers (who are not VAT payers), adding VAT will increase your price and make you less competitive. You will also take on more administration – VAT returns, the VAT control statement and stricter record-keeping.
What to consider before deciding
Registration is a longer-term commitment, and getting out of it again is more complicated. It therefore pays to run the numbers on the structure of your customers and costs before you decide.
Current figures (2026)
Turnover for VAT registration (from 2025)
Turnover for the calendar year → VAT payer from the following year | €50,000 |
Turnover exceeded during the year → VAT payer immediately | €62,500 |
Figures valid for 2026; check the current wording.
Related articles: Mandatory VAT registration: turnover and conditions, How to file your first VAT return, The VAT control statement: what it contains and what to watch out for.
Frequently asked questions
After registering, can I deduct VAT on purchases made before registration?
To a certain extent, yes – for example on assets that you hold at the time of registration and use in your business. The conditions need to be assessed individually.
How often does a VAT payer file returns?
As a rule, monthly or quarterly, depending on turnover and classification. The VAT control statement is also filed together with the return.
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